Owner Representation
The owner pays for everything and usually holds the weakest paperwork. Almost every document on a construction project was drafted by someone else.
An owner enters a project with money and a property and very little else. The contract is normally the contractor's form. The schedule is the contractor's schedule. The payment applications, the sworn statements and the change orders are all prepared by the party being paid. The owner's protection comes from the terms agreed at the start and from the discipline applied to payments as the job proceeds.
The firm represents owners on residential and commercial projects, from contract through completion, and in disputes where a project has gone wrong.
Protecting the position at the outset
- A defined scope with an explicit list of exclusions, so extras are visible rather than assumed
- Realistic allowances, since low allowances make a bid look competitive and produce overages later
- A payment schedule tied to verified progress rather than to the calendar
- Retainage held until completion, with clear conditions for release
- A written change order requirement, priced and approved before work proceeds
- A completion date with a defined consequence, whether liquidated damages or another remedy
- Lien protection through sworn statements and waivers with every payment
- Verification that the contractor is licensed and properly insured, before signature
- A warranty period with a clear notice procedure
Michigan's lien statute allows unpaid subcontractors and suppliers to lien the property even where the owner has paid the general contractor in full. Obtaining sworn statements and waivers with each disbursement is the mechanism that protects against that, and it only works if it is done every time.
Administration that holds up later
Owners lose disputes on record keeping as often as contractors do. The practices that matter are unglamorous and effective: pay only against a schedule of values reflecting work actually in place, insist on written change orders before the work happens, photograph progress at regular intervals, keep correspondence in writing rather than in phone calls, and raise concerns about quality when they arise rather than saving them for the final payment.
That last point matters more than owners expect. An objection raised for the first time when payment is demanded reads very differently from one raised in writing when the work was performed.
Owner side disputes
How this work runs
- Contract before commitmentReview or drafting before signature and before any substantial deposit, which is where the most value exists.
- Payment discipline establishedSchedule of values, sworn statements and waivers, and a change order form, set up so the process runs itself.
- Issues raised in writingConcerns documented as they arise, which preserves the position without necessarily escalating the relationship.
- Enforcement where neededNotice, withholding properly calculated, and where required termination or claims, with the project record already in order.
Questions from owners
How much should I pay up front?
As little as the job genuinely requires. Some mobilisation and materials deposit is ordinary. Paying far ahead of work in place removes your leverage and leaves you exposed if the contractor fails or walks. Payments should track verified progress.
The contractor says a written contract is not necessary for a job this size.
The size of the job is exactly the reason to have one. A written agreement protects both parties and costs a fraction of the dispute it prevents. Reluctance to put terms in writing is itself information worth weighing.
Can I withhold payment for work I am not happy with?
You can generally withhold an amount reasonably related to the cost of correcting the specific problem, documented at the time. Withholding the whole balance over a limited defect is a frequent error that can place you in breach.
How do I make sure subcontractors are actually being paid?
Require a sworn statement listing every subcontractor and supplier with each payment application, and obtain signed waivers from them for amounts paid. Without that, you can pay the general contractor in full and still face liens from the trades.
Get the contract right before the deposit leaves.
[PHONE]Matters with a lien deadline, a filing deadline or a hearing already on the calendar are handled by phone.